In this chapter we argue that the higher education sector and the leaders of universities are remarkably resistant to change, and that the main impetus for innovation in higher education is the government. In an increasingly competitive and globalized world, governments look to higher education as a means to earn export dollars, make a contribution to society’s problems, and provide an educated work force for the economy. In this chapter we demonstrate that the view of higher education as a public good has been replaced with a government philosophy and policy direction that the main beneficiary of higher education is the private individual. In short, the individual receives a private benefit and as such is a consumer of higher education. Concomitantly, government is looking to the individual to shoulder an increasing financial burden as shrinking government budgets are stretched to meet the demands of other areas of the economy. The result is reduced government funding, increasing competition from traditional and non-traditional providers, and an increasingly demanding and sophisticated student/consumer.